Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
Nanjing Putian Telecommunications Co., Ltd.
2011 Third Quarterly Report(Full Text)
§1 Important notice
1.1 The Board of Directors, the Supervisory Committee, the directors, supervisors and senior
management of the Company hereby confirm that there are no factitious record, misleading statements
or material omissions in this report, and collectively and individually accepts full responsibility for the
truthfulness, accuracy and completeness of the whole contents.
1.2 The financial report of the third quarter was not audited by a public accounting firm.
1.3 Chairman of the BOD Mr. Sun Liang, General Manager Mr. Kong Shanyou, and Chief
Accountant Mr. Shi Lian hereby confirm that the financial report in this report is truthful and complete.
1.4 This report is prepared both in Chinese and in English. In case of any inconsistency between
the two versions, the Chinese version should prevail.
§2 Company Profile
2.1 Main accounting data and financial indicators( expressed in RMB Yuan)
30 Sep. 2011 31 Dec. 2010 Increase/decrease (%)
Total assets(Yuan) 1,902,843,686.29 1,582,643,987.41 20.23%
Equity attributable to shareholders of the
369,185,342.74 360,616,964.74 2.38%
listed company(Yuan)
Share capital 215,000,000.00 215,000,000.00 0.00%
Net assets per share attributable to
shareholders of the listed company(Yuan 1.717 1.677 2.39%
per share)
Increase/decrease Increase/decrease
over the same over the same
Jul.-Sep. 2011 Jan. – Sep. 2011
period of last period of last
year(%) year(%)
Total operating income(Yuan) 586,366,046.19 16.77% 1,753,432,763.66 29.13%
Net profit attributable to shareholders of
632,151.51 -91.51% 8,286,298.04 -47.23%
the listed company(Yuan)
Net cash generated from operating
- - -74,317,507.51 68.03%
activities(Yuan)
Net cash generated from operating
- - -0.346 68.02%
activities per share (Yuan per share)
Basic earnings per share (Yuan per share) 0.003 -91.43% 0.039 -46.58%
Diluted earnings per share (Yuan per
0.003 -91.43% 0.039 -46.58%
share)
Weighted average return on net assets
0.17% -1.97% 2.27% -2.33%
(%)
Weighted average return on net assets
after deducting non-recurrent profits or 0.08% -2.05% 2.01% -2.35%
losses (%)
From year-beginning to the end
Items of non-recurrent gains or losses Note
of the reporting period
Gains/losses from disposal of non-current assets 15,377.59
Government subsidies accounted into current profit/loss, except 865,124.05
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
the continuous ration subsidies directly related to the normal
operations and stipulated by the government
Profit and loss of debt restructure 107,044.31
Net amount of other non-operating profit and expenses excluding
524,693.53
items above
Influenced amount of minority interest -482,047.41
Influenced amount of income tax -73,298.85
Total 956,893.22 -
2.2 Total number of shareholders and top ten shareholders not subject to sale prohibition at the
end of the reporting period
Total number of shareholders at the end of
14,458
the reporting period
Top ten shareholders of tradable shares
Shareholder Holding of tradable shares at Share type
the end of the reporting period
CHAN KEUNG 1,289,600 Domestically-listed shares in foreign currency
Wang Feifei 588,008 Domestically-listed shares in foreign currency
Shu Jianping 500,500 Domestically-listed shares in foreign currency
Gu Feng 442,400 Domestically-listed shares in foreign currency
Chen Chaofan 416,979 Domestically-listed shares in foreign currency
Yan Zengqing 399,806 Domestically-listed shares in foreign currency
Long Jianqiu 340,000 Domestically-listed shares in foreign currency
Zhao Guanghui 331,650 Domestically-listed shares in foreign currency
Liu Xiaoqi 318,261 Domestically-listed shares in foreign currency
Chen Ren 310,000 Domestically-listed shares in foreign currency
§3 Significant events
3.1 Substantial changes in main items on the financial statements and main financial indicators,
and explanation on the reason of the changes
√applicable □inapplicable
Change(% Reason of a substantial
Item 30 Sep. 2011 31 Dec. 2010 Change(Yuan)
) change
Sales scale was expanded and
Accounts receivable payment from
710,681,251.01 537,895,136.38 172,786,114.63 32.12%
receivable customers within credit period
was increased.
Inventory circulation was
Inventory 520,431,664.67 328,533,395.99 191,898,268.68 58.41% increased as production and
sales scale expanded.
Purchase of materials
increased as production scale
Accounts
840,779,560.57 581,633,610.57 259,145,950.00 44.55% expanded, and balance of
payable
payment payable to suppliers
increased.
By sending goods to customers
Advances from in the period, prepayment by
37,477,973.85 82,459,973.00 -44,981,999.15 -54.55%
customers customers in previous period
was recognized as revenue
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
from sales of goods
At the end of the reporting
period, the balance of input tax
Taxes payable -16,260,290.90 9,130,272.74 -25,390,563.64 -278.09%
to be deducted was larger than
output tax.
Change(%
Change(Yuan)
Jan.-Sep. 2011 Jan.-Sep. 2010 )
Because of a substantial
Total operating increase of sales scale, costs
1,736,863,352.10 1,331,047,458.88 405,815,893.22 30.49%
Cost and expenses went up in
different ranges.
As sales scale expanded,
marketing expenses, after-sale
Sales
105,606,479.22 77,434,278.35 28,172,200.87 36.38% service expenses, salaries,
expenses
transportation charges and
travelling expenses increased
Increase of bank loan and rising
Financial
22,239,129.73 12,594,499.11 9,644,630.62 76.58% of bank loan interest rates
expenses
made interest costs grow.
As sales scale expanded and
Net profit market competition got fierce,
attributable to sales expenses increased
owners of the 8,286,298.04 15,702,386.18 -7,416,088.14 -47.23% substantially, and costs in
parent material, labor and financing all
company went up, which resulted in a
decrease of profit.
The Company strengthened
work on withdraw of accounts
Net Cash flow
receivable , and payment from
from operating -74,317,507.51 -232,471,091.11 158,153,583.60 68.03%
customers in the reporting
activities
period was larger than that of
the same period of last year.
The Company paid 2 million
Net Cash flow dollars to establish Nanjing
from investing -10,649,211.66 -23,007,179.97 12,357,968.31 53.71% Putian Optical Network Co.,
activities Ltd. last year. There were no
such expenses in this period.
Net Cash flow
Bank loan increased in the
from financing -2,183,853.91 -19,900,402.11 17,716,548.20 89.03%
reporting period.
activities
3.2 Progress of significant events as well as analysis of its effect and solution plan
□applicable √inapplicable
3.2.1 Being issued a non-standard auditor’s opinion
□applicable √inapplicable
3.2.2 Fund provided by the Company to its controlling shareholder or related parties of the controlling
shareholder, and guaranty provided by the Company in violation of prescriptive procedures
□applicable √inapplicable
3.2.3 Signing and implementation of significant contracts that are related to routine operations
□applicable √inapplicable
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
3.2.4 Other issues
□applicable √inapplicable
3.3 Fulfillment of commitment made by the Company, shareholders or the effective controller
□applicable √inapplicable
3.4 Caution and explanation on a forecasted accumulated net loss for the period from the
year-beginning to the end of the next reporting period or a material change in net profit
compared with the same period of last year
□applicable √inapplicable
3.5 Other significant events to be necessarily stated
3.5.1 Securities investment
□applicable √ inapplicable
3.5.2 Reception of investigation, communication and interview during the reporting period
In the reporting period, the Company did not receive on-site investigation, telephone communication and written
enquiry from investors.
3.6 Derivative investment
□applicable √inapplicable
3.6.1 Holding of derivative investment products at the end of the reporting period
□applicable √inapplicable
§4 Appendix
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
4.1 Balance Sheet
Company name: Nanjing Putian Telecommunications Co., Ltd. 30 September 2011 Unit: CNY
At the end of the current period At the beginning of the current period
Item
Consolidated Parent Company Consolidated Parent Company
Current asset:
Monetary funds 245,247,681.02 186,951,617.61 293,018,925.87 186,894,431.96
Settlement provision
Capital lent
Tradable financial assets
Notes receivable 8,760,502.92 2,642,169.52 8,756,893.05 2,778,605.86
Accounts receivable 710,681,251.01 481,813,810.43 537,895,136.38 399,959,567.19
Advances to suplliers 52,392,988.49 48,189,677.08 55,963,371.47 38,600,316.28
Insurance receivable
Reinsurance receivable
Contract reserve of reinsurance
receivable
Interest receivable
Dividends receivable
Other receivables 30,800,638.15 48,903,699.20 31,336,109.33 36,567,802.25
Purchase restituted finance asset
Inventories 520,431,664.67 298,214,420.66 328,533,395.99 192,660,176.68
Non-current asset due in year
Other current assets
Total current asset 1,568,314,726.26 1,066,715,394.50 1,255,503,832.09 857,460,900.22
Non-current assets
Granted loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 243,496,854.79 351,467,169.38 238,518,944.71 346,489,259.30
Investment property 4,865,787.93 5,020,611.87
Fixed assets 71,242,860.44 32,429,664.81 74,312,488.05 35,143,253.92
Construction in progress 6,579,237.59 743,162.49
Construction materials
Fixed assets held for disposal
Productive biological assets
Petrol asstest
Intangible assets 8,344,219.28 4,978,628.13 9,288,110.69 5,656,457.31
Development costs
Goodwill
Long-term prepayment
Differed income tax asset
Other non-current assets
Total non-current assets 334,528,960.03 389,618,624.81 327,140,155.32 387,288,970.53
Total assets 1,902,843,686.29 1,456,334,019.31 1,582,643,987.41 1,244,749,870.75
Legal representative：Sun Liang Financial controller: Kong Shanyou Accountant officer: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
4.1 Balance Sheet(continued)
Company name: Nanjing Putian Telecommunications Co., Ltd. 30 September 2011 Unit: CNY
At the end of the current period At the beginning of the current period
Item Consolidated Parent Company Consolidated Parent Company
Current liabilities
Short-term loans 485,000,000.00 335,000,000.00 437,000,000.00 320,000,000.00
Loan from Central Bank
Deposit received and hold for others
Capital borrowed
Tradable financial liabilities
Notes payable 61,315,408.60 121,315,408.60 370,000.00 80,370,000.00
Accounts payable 840,779,560.57 498,283,546.77 581,633,610.57 342,106,705.49
Advances from customers 37,477,973.85 13,670,199.65 82,459,973.00 36,643,103.73
Selling financial asset of repurchase
Commission charge and commission
payable
Accrued payroll 14,930,545.17 5,653,697.38 14,668,971.89 5,181,837.54
Tax payable -16,260,290.90 -929,686.50 9,130,272.74 11,481,928.76
Interest payable
Dividends payable 1,344,198.22
Other payables 46,362,871.36 171,893,050.43 36,186,930.21 132,649,038.48
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liability due in year
Other current liabilities
Total current liabilities 1,470,950,266.87 1,144,886,216.33 1,161,449,758.41 928,432,614.00
Non-current liabilities
Long-term borrowings
Bonds payable
Long-term payables 80,118.00 80,118.00 80,118.00 80,118.00
Special payables
Estimated liabilities
Differed income tax liabilities
Other non-recurrent liabilities
Total non-current liabilities 80,118.00 80,118.00 80,118.00 80,118.00
Total liabilities 1,471,030,384.87 1,144,966,334.33 1,161,529,876.41 928,512,732.00
Owners’ equity (or shareholders’ equity)
Paid-in capital (or share capital) 215,000,000.00 215,000,000.00 215,000,000.00 215,000,000.00
Capital reserves 185,374,533.85 172,417,299.81 185,374,533.85 172,417,299.81
Less: Treasury stock
Reasonable reserve
Surplus reserve 589,559.77 589,559.76 589,559.77 589,559.76
Provision of general risk
Undistributed profit -27,460,854.61 -76,639,174.59 -35,747,152.65 -71,769,720.82
Balance difference of foreign currency
-4,317,896.27 -4,599,976.23
translation
Total equity attributable to owners of the
369,185,342.74 311,367,684.98 360,616,964.74 316,237,138.75
parent company
Minor interests 62,627,958.68 60,497,146.26
Total owners’ equity 431,813,301.42 311,367,684.98 421,114,111.00 316,237,138.75
Total of liabilities and owners’ equity 1,902,843,686.29 1,456,334,019.31 1,582,643,987.41 1,244,749,870.75
Legal representative：Sun Liang Financial controller: Kong Shanyou Accountant officer: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
4.2 Income statement for the reporting period
Company name: Nanjing Putian Telecommunications Co., Ltd. July to September 2011 Unit: CNY
Current Period Same Period of Last Year
Item
Consolidated Parent Company Consolidated Parent Company
I. Total operating income 586,366,046.19 403,567,802.43 502,163,557.42 348,077,319.49
Incl. operating income 586,366,046.19 403,567,802.43 502,163,557.42 348,077,319.49
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 583,175,244.93 410,511,028.50 489,328,340.67 348,970,849.17
Incl. operating cost 498,796,176.07 366,645,333.99 433,215,940.27 317,972,260.92
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expenses
Operating tax and extras 1,474,279.46 23,762.78 1,386,408.25 166,330.47
Sales expense 37,671,537.70 21,995,904.18 25,916,089.18 14,606,609.69
Administration expense 34,942,962.58 12,756,203.01 23,796,800.40 11,806,706.88
Financial expenses 10,209,097.86 9,089,824.54 5,013,102.57 4,418,941.21
Losses of devaluation of asset 81,191.26
Plus: Gains from change of fair value (“-“ for loss)
Investment income (“-“ for loss) 2,207,626.43 5,526,794.17 994,969.73 3,469,615.44
Incl. Investment income on affiliated
2,207,626.43 2,563,713.73 994,969.73 994,969.73
Company and joint ventureand joint venture
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 5,398,427.69 -1,416,431.90 13,830,186.48 2,576,085.76
Plus: Non-operating income 299,920.12 179,876.96 335,196.71
Less: Non-operating expenses 68,649.72 4,000.00 72,000.70 339.76
Incl. Loss from disposal of non-current
55,176.00
assets
IV. Total profit (“-“ for loss) 5,629,698.09 -1,240,554.94 14,093,382.49 2,575,746.00
Less: Income tax 1,657,706.07 0.00 1,921,752.02
V. Net profit (“-“ for net loss) 3,971,992.02 -1,240,554.94 12,171,630.47 2,575,746.00
Net profit attributable to the owners of parent
632,151.51 -1,240,554.94 7,444,773.81 2,575,746.00
company
Minority shareholders’ gains and losses 3,339,840.51 4,726,856.66
VI. Earnings per share:
(I) Basic earnings per share 0.003 -0.006 0.035 0.012
(II) Diluted earnings per share 0.003 -0.006 0.035 0.012
VII. Other comprehensive income 206,142.42
VIII. Total comprehensive income 3,971,992.02 -1,240,554.94 12,377,772.89 2,575,746.00
Total comprehensive income attributable to
632,151.51 -1,240,554.94 7,650,916.23 2,575,746.00
owners of parent company
Total comprehensive income attributable to
3,339,840.51 4,726,856.66
minority shareholders
Legal representative：Sun Liang Financial controller: Kong Shanyou Accountant officer: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
4.3 Income Statement from year-beginning to the end of the reporting period
Company name: Nanjing Putian Telecommunications Co., Ltd. January to September 2011 Unit: CNY
Current Period Same Period of Last Year
Item
Consolidated Parent Company Consolidated Parent Company
I. Total operating income 1,753,432,763.66 1,146,301,211.99 1,357,871,075.32 910,252,896.83
Incl. operating income 1,753,432,763.66 1,146,301,211.99 1,357,871,075.32 910,252,896.83
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 1,736,863,352.10 1,163,996,360.10 1,331,047,458.88 918,719,408.02
Incl. operating cost 1,515,528,654.78 1,045,853,004.69 1,168,871,842.25 826,301,585.99
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expenses
Operating tax and extras 4,993,841.41 845,770.96 3,523,507.59 8,204.17
Sales expense 105,606,479.22 61,473,363.60 77,434,278.35 47,902,074.86
Administration expense 86,414,399.96 35,105,000.18 68,434,331.58 33,092,255.06
Financial expenses 22,239,129.73 19,172,618.81 12,594,499.11 11,226,287.94
Losses of devaluation of asset 2,080,847.00 1,546,601.86 189,000.00 189,000.00
Plus: Gains from change of fair value (“-“ for loss)
Investment income (“-“ for loss) 5,061,610.08 12,601,390.52 3,994,016.52 11,045,362.23
Incl. Investment income on affiliated
4,977,910.08 4,977,910.08 3,755,843.12 3,755,843.12
Company and joint ventureand joint venture
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 21,631,021.64 -5,093,757.59 30,817,632.96 2,578,851.04
Plus: Non-operating income 1,638,261.54 250,795.90 1,593,783.74 1,056,423.07
Less: Non-operating expenses 126,022.06 26,492.08 314,361.72 166,072.66
Incl. Loss from disposal of non-current
55,176.00 6,665.20
assets
IV. Total profit (“-“ for loss) 23,143,261.12 -4,869,453.77 32,097,054.98 3,469,201.45
Less: Income tax 4,421,591.00 5,091,148.85
V. Net profit (“-“ for net loss) 18,721,670.12 -4,869,453.77 27,005,906.13 3,469,201.45
Net profit attributable to the owners of parent
8,286,298.04 -4,869,453.77 15,702,386.18 3,469,201.45
company
Minority shareholders’ gains and losses 10,435,372.08 11,303,519.95
VI. Earnings per share:
(I) Basic earnings per share 0.039 -0.023 0.073 0.016
(II) Diluted earnings per share 0.039 -0.023 0.073 0.016
VII. Other comprehensive income 282,079.96 8,204.76
VIII. Total comprehensive income 19,003,750.08 -4,869,453.77 27,014,110.89 3,469,201.45
Total comprehensive income attributable to
8,568,378.00 -4,869,453.77 15,710,590.94 3,469,201.45
owners of parent company
Total comprehensive income attributable to
10,435,372.08 11,303,519.95
minority shareholders
Legal representative：Sun Liang Financial controller: Kong Shanyou Accountant officer: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
4.4 Cash Flow Statement from year-beginning to the end of the reporting period
Company name: Nanjing Putian Telecommunications Co., Ltd. January to September 2011 Unit: CNY
Current Period Same Period of Last Year
Item
Consolidated Parent Company Consolidated Parent Company
I. Net cash flow from operating activities
Cash received from sales of products and providing of services 1,814,325,142.84 1,204,107,552.34 1,381,472,664.12 899,165,637.90
Net increase of customer deposit and inter-bank deposit
Net increase of loans from central bank
Net increase of inter-bank loans from other financial institutions
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Refunds of taxes 838,785.89 463,590.07
Other cash received from operating activities 12,855,187.35 56,898,162.69 17,999,074.08 31,373,666.16
Sub-total of cash inflow from operating activities 1,828,019,116.08 1,261,005,715.03 1,399,935,328.27 930,539,304.06
Cash paid for goods and services 1,610,931,555.48 1,075,892,704.07 1,402,982,007.31 1,004,555,995.54
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to and on behalf of employees 105,769,695.12 62,928,499.97 82,763,817.61 44,038,769.20
Payments of all types of taxes 60,227,949.59 18,190,041.48 53,566,119.68 14,490,324.03
Other cash payments relating to operating activities 125,407,423.40 102,547,572.01 93,094,474.78 79,409,447.45
Sub-total of cash outflow from operating activities 1,902,336,623.59 1,259,558,817.53 1,632,406,419.38 1,142,494,536.22
Net Cash flow from operating activities -74,317,507.51 1,446,897.50 -232,471,091.11 -211,955,232.16
II. Cash flow from investing activities
Cash received from recovering investment
Cash received from investment income 83,700.00 7,623,480.44 238,173.40 238,173.40
Net cash retrieved from disposal of fixed assets, intangible
211,616.96 166,366.96 17,398.31
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other cash received concerning investing activities
Sub-total of cash inflow from investing activities 295,316.96 7,789,847.40 255,571.71 238,173.40
Cash paid for purchasing fixed, intangible and other long-term
10,944,528.62 2,739,908.63 9,718,351.68 6,961,320.00
assets
Cash paid for investment 13,544,400.00 13,544,400.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other operational units
Cash paid for other investing activities
Sub-total of cash outflow from investing activities 10,944,528.62 2,739,908.63 23,262,751.68 20,505,720.00
Net cash flow from investing activities -10,649,211.66 5,049,938.77 -23,007,179.97 -20,267,546.60
III. Cash flow from financing activities
Cash received from absorbing investment
Incl. Cash received from absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 415,000,000.00 305,000,000.00 454,000,000.00 414,000,000.00
Cash received from bond placing
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 415,000,000.00 305,000,000.00 454,000,000.00 414,000,000.00
Cash paid for settling debts 347,000,000.00 290,000,000.00 452,000,000.00 424,000,000.00
Cash paid for dividend and profit distributing or interest paying 30,183,853.91 20,376,893.22 21,900,402.11 14,702,501.06
Incl. Dividend and profit of minority shareholder paid by
6,652,949.14 6,867,378.16
subsidiaries
Cash paid for other financing activities 40,000,000.00 40,000,000.00
Subtotal of cash outflow due to financing activities 417,183,853.91 350,376,893.22 473,900,402.11 438,702,501.06
Net cash flow from financing activities -2,183,853.91 -45,376,893.22 -19,900,402.11 -24,702,501.06
IV. Influence of exchange rate alternation on cash and cash
-219,557.40 -219,557.40
equivalents
V. Net increase of cash and cash equivalents -87,370,130.48 -39,099,614.35 -275,378,673.19 -256,925,279.82
Plus: Balance of cash and cash equivalents at the beginning of
291,447,011.87 185,951,591.96 422,853,002.17 348,384,407.10
term
VI. Balance of cash and cash equivalents at the end of term 204,076,881.39 146,851,977.61 147,474,328.98 91,459,127.28
Legal representative：Sun Liang Financial controller: Kong Shanyou Accountant officer: Shi Lian
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Nanjing Putian Telecommunications Co., Ltd. 2011 Third Quarterly Report (Full Text)
4.5 Auditor’s report
Auditor’s opinion： Not audited.
Board of Directors
Nanjing Putian Telecommunications Co., Ltd.
25 October 2011
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